Ex-IT Manager’s Pension Frozen by SIU amidst Kokstad Municipality Tender Controversy
Durban – The Special Investigating Unit (SIU) has obtained an interim preservation order from the Special Tribunal that prohibits the KwaZulu-Natal Joint Municipal Pension Fund (NJMPF) from distributing pension benefits totaling R2,768,021.42 to Yaw Owusu-Boakye, the former IT Manager of Greater Kokstad Local Municipality.
This development follows an investigation by the SIU, which uncovered that Owusu-Boakye is the beneficial owner of Obytech Solutions (Pty) Ltd, the company that was awarded a R5.27 million contract by the Greater Kokstad Local Municipality to renew software licenses for a period of three years.
The order issued by the Special Tribunal bars the NJMPF from taking any action that might hinder or diminish the value of the funds it holds or manages pertaining to the pension benefits owed to Owusu-Boakye.
The preservation order is a result of an SIU probe into the operations of the Greater Kokstad Local Municipality, particularly focusing on the legitimacy of the tender granted to Obytech Solutions for software license renewal.
On Wednesday, 2 September 2026, the SIU disclosed that its investigation found Owusu-Boakye had illegally manipulated the procurement process to ensure that his company was awarded the contract through false representations in its bidding documents.
The municipality made three payments to Obytech Solutions under the software license renewal agreement, amounting to R1,227,875.55 on 5 March 2023; R2,815,652.74 on 26 July 2023; and another R1,227,875.55 on 24 January 2025, resulting in total payments of R5,271,403.84.
Further examination revealed that Owusu-Boakye was authorized to sign for Obytech Solutions’ bank account and had complete control over the funds contained within it.
The SIU’s investigation indicated that the municipality received minimal to no value for the services rendered by Obytech Solutions.
Moreover, the investigation flagged substantial non-delivery under the contract, valued at R3,465,835, with funds allegedly being diverted to cover personal expenditures and lifestyle choices.
Owusu-Boakye resigned in June 2025 as the SIU investigation was underway.
On 31 March 2026, the SIU filed an application with the Tribunal requesting a review and annulment of the Greater Kokstad Local Municipality’s decision to engage Obytech Solutions for the three-year software license renewal services.
The SIU is also pursuing an order that would require Obytech Solutions to return profits earned from the tender.
This investigation is conducted under Proclamation 244 of 2025, which authorizes the SIU to scrutinize two tenders assigned by the Greater Kokstad Local Municipality.
These include the selection of a service provider for the supply and renewal of software licenses for three years, as well as the appointment of a service provider for customer care and information technology (IT) service desk solutions.
The preservation order is part of the SIU’s broader initiatives to enforce investigation outcomes and ensure accountability, including recovering financial losses incurred by state entities due to corruption, fraud, and mismanagement.
Under the Special Investigating Units and Special Tribunals Act 74 of 1996, the SIU has the authority to initiate civil actions in the High Court or the Special Tribunal to address misconduct revealed during its inquiries.
Moreover, the SIU forwards evidence indicating potential criminal activity to the National Prosecuting Authority (NPA) for appropriate legal action, as stipulated by the Act.
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